Fund Facts

Inception:
September 29, 2014

Fund Type:
Multi-Strategy Portfolio

I-shares Symbol: JAIMX

A-shares Symbol: JAAMX

C-shares Symbol: JACMX


Institutional Manager:
James Alpha Advisors, LLC

About James Alpha Advisors, LLC

James Alpha Advisors, LLC serves as the Advisor to the James Alpha family of mutual funds and related portfolios.  They are a related entity to James Alpha Management, a family office and diversified asset management firm specializing in identifying, seeding, and growing alternative investment strategies for institutional and individual investors.  As an expert in alternative strategies James Alpha searches out top managers in the alternatives space with deep domain expertise.  Seeking proven and repeatable investment processes, James Alpha invests a significant amount of capital in each strategy and provides the ongoing operational, management and sales support to grow assets under management and build successful partnerships.

Strategic Foundation

James Alpha Advisors, LLC dynamically allocates between their strategy and those of the Fund's sub-advisors to adjust for changing market conditions.  50% to 70% of the portfolio is generally allocated to income producing strategies through both traditional and alternative asset classes. The Fund seeks to minimize underlying manager/strategy correlations while maintaining desired market exposure, allowing the Fund to potentially benefit during times of market appreciation.  In addition, the Fund seeks to minimize downside during times of market distress through traditional portfolio hedging techniques and long/short exposure.¹

¹ A long/short strategy is an investing strategy of taking long positions in stocks that are expected to appreciate and short positions in stocks that are expected to decline. A long/short strategy seeks to minimize market exposure, while profiting from stock gains in the long positions and price declines in the short positions. Although this may not always be the case, the strategy would be profitable on a net basis as long as the long positions generate more profit than the short positions, or the other way around.

Sub-Advisors

The Fund utilizes a number of sub-advisors with expertise in specialized areas of investing for sleeves of the Fund’s overall portfolio:

  • Ascent Investment Advisors, LLC - Global Real Estate
  • Bullseye Assest Management, LLC - Long/Short Small Cap Equity
  • Yorkville Capital Management, LLC - MLPs
  • Kellner Private Fund Management, LLC - Merger Arbitrage

There is no assurance that the portfolio will achieve its investment objective. Stock values fluctuate in response to activities specific to the company as well as general market, economic and political conditions. Certain “over-the-counter” derivative instruments, such as over-the-counter swaps and options, are subject to the risk that the other party to a contract will not fulfill its contractual obligations. Derivatives may be volatile and some derivatives have the potential for loss that is greater than the Portfolio’s initial investment. Investments in foreign securities could subject the Fund to greater risks including, currency fluctuation, economic conditions, and different governmental and accounting standards. In addition to the risks associated with investing in securities of foreign companies, countries with emerging markets also may have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues.

ETNs are subject to credit risk and their value will be influenced by time to maturity, supply and demand, volatility and lack of liquidity in underlying commodities markets, changes in interest rates, changes in the issuer's credit rating, and economic, legal, or political events. The energy infrastructure MLPs in which the Portfolio invests are subject to risks specific to the industry they serve. To the extent the Portfolio invests a greater amount in any one sector or industry, such as real estate or energy, the Portfolio’s performance will depend to a greater extent on the overall condition of that sector or industry. Leverage created from borrowing money or certain types of transactions or instruments, including derivatives, may impair the Portfolio's liquidity, cause it to liquidate positions at an unfavorable time, increase volatility or otherwise not achieve its intended objective. Prior to the Portfolio, the Manager had no experience directly managing an open-end mutual fund. The investment techniques and risk analysis used by the portfolio managers for each of the Portfolio’s investment strategies may not produce the desired results. Investments in underlying funds that own small and mid-capitalization companies may be more vulnerable than larger, more established organizations. An MLP is a public limited partnership or limited liability company. MLP interests may be less liquid than conventional publicly traded securities. The risks of investing in an MLP are similar to those of investing in a partnership , including more flexible governance structures, which could result in less protection for investors than investments in a corporation. A change in current tax law, or a change in the underlying business mix of a given MLP, could result in an MLP being treated as a corporation for U.S. federal income tax purposes, which would result in such MLP being required to pay U.S. federal income tax on its taxable income.

The Portfolio does not invest in real estate directly, but because the Portfolio invests in REITs and publicly traded real estate and real estate-related securities, its portfolio will be significantly impacted by the performance of the real estate market and may experience more volatility and be exposed to greater risk than a portfolio that does not make such investments. Short sales may cause the Portfolio to repurchase a security at a higher price, thereby causing the Portfolio to incur a loss. The Portfolio’s investment techniques, including use of covered call options, short-term trading strategies, and high portfolio turnover rate, may result in more of the Portfolio’s income dividends and capital gains distributions being taxable to you at ordinary income tax rates than it would if it did not engage in such techniques. The Portfolio may have investments that appreciate or decrease significantly in value over short periods of time.

An MLP is a public limited partnership or limited liability company. MLP interests may be less liquid than conventional publicly traded securities. The risks of investing in an MLP are similar to those of investing in a partnership, including more flexible governance structures, which could result in less protection for investors than investments in a corporation. A change in current tax law, or a change in the underlying business mix of a given MLP ,could result in an MLP being treated as a corporation for U.S. federal income tax purposes, which would result in such MLP being required to pay U.S. federal income tax on its taxable income. The Portfolio does not invest in real estate directly, but because the Portfolio invests in REITs and publicly traded real estate and real estate-related securities, its portfolio will be significantly impacted by the performance of the real estate market and may experience more volatility and be exposed to greater risk than a portfolio that does not make such investments.

Short sales may cause the Portfolio to repurchase a security at a higher price, thereby causing the Portfolio to incur a loss. The Portfolio’s investment techniques, including use of covered call options, short-term trading strategies, and high portfolio turnover rate, may result in more of the Portfolio’s income dividends and capital gains distributions being taxable to you at ordinary income tax rates than it would if it did not engage in such techniques. The Portfolio may have investments that appreciate or decrease significantly in value over short periods of time.